Question
Automobile insurance is much more expensive for teenage drivers than for older drivers. To justify this cost difference, insurance companies claim that younger drivers are
Automobile insurance is much more expensive for teenage drivers than for older drivers. To justify this cost difference, insurance companies claim that younger drivers are much more likely to be involved in costly accidents. To test this claim, a researcher obtains information about registered drivers from the department of motor vehicles (DMV) and selects a sample of n = 300 accident reports from the police department. The DMV reports the percentage of registered drivers in each age category as follows: 16% are younger than age 20; 28% are 20-29 years old; and 56% are age 30 or older. The number of accident reports for each age group is as follows:
Under age 20 Age 20-29. Age 30 or older
68 92 140
in question #8, what value did you compute for the expected frequency of drivers aged 20-29?
In other words, if the distribution of accidents for the three age groups is not significantly different from the distribution of drivers (the null hypothesis is true), how many accidents would we expect to see in the 20-29 category?
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